WallStSmart

Diamondback Energy Inc (FANG)vsTexas Pacific Land Corporation (TPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 1710% more annual revenue ($16.25B vs $897.54M). TPL leads profitability with a 60.3% profit margin vs 9.0%. TPL appears more attractively valued with a PEG of 7.33. TPL earns a higher WallStSmart Score of 71/100 (B).

FANG

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 6.0Value: 5.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.28

TPL

Strong Buy

71

out of 100

Grade: B

Growth: 8.7Profit: 10.0Value: 3.7Quality: 8.5
Piotroski: 2/9Altman Z: 8.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FANGUndervalued (+47.0%)

Margin of Safety

+47.0%

Fair Value

$318.64

Current Price

$204.97

$113.67 discount

UndervaluedFair: $318.64Overvalued

Intrinsic value data unavailable for TPL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FANG6 strengths · Avg: 9.2/10
Operating MarginProfitability
48.5%10/10

Strong operational efficiency at 48.5%

Revenue GrowthGrowth
52.5%10/10

Revenue surging 52.5% year-over-year

EPS GrowthGrowth
179.5%10/10

Earnings expanding 179.5% YoY

Market CapQuality
$57.40B9/10

Large-cap with strong market position

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$2.59B8/10

Generating 2.6B in free cash flow

TPL6 strengths · Avg: 10.0/10
Return on EquityProfitability
32.4%10/10

Every $100 of equity generates 32 in profit

Profit MarginProfitability
60.3%10/10

Keeps 60 of every $100 in revenue as profit

Operating MarginProfitability
78.2%10/10

Strong operational efficiency at 78.2%

Revenue GrowthGrowth
31.2%10/10

Revenue surging 31.2% year-over-year

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
8.5810/10

Safe zone — low bankruptcy risk

Areas to Watch

FANG4 concerns · Avg: 3.0/10
P/E RatioValuation
39.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
25.242/10

Expensive relative to growth rate

TPL4 concerns · Avg: 2.8/10
Price/BookValuation
16.4x4/10

Trading at 16.4x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
7.332/10

Expensive relative to growth rate

P/E RatioValuation
48.8x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : FANG

The strongest argument for FANG centers on Operating Margin, Revenue Growth, EPS Growth. Revenue growth of 52.5% demonstrates continued momentum.

Bull Case : TPL

The strongest argument for TPL centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 60.3% and operating margin at 78.2%. Revenue growth of 31.2% demonstrates continued momentum.

Bear Case : FANG

The primary concerns for FANG are P/E Ratio, Return on Equity, Piotroski F-Score.

Bear Case : TPL

The primary concerns for TPL are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 48.8x leaves little room for execution misses.

Key Dynamics to Monitor

FANG profiles as a hypergrowth stock while TPL is a growth play — different risk/reward profiles.

TPL carries more volatility with a beta of 0.62 — expect wider price swings.

FANG is growing revenue faster at 52.5% — sustainability is the question.

FANG generates stronger free cash flow (2.6B), providing more financial flexibility.

Bottom Line

TPL scores higher overall (71/100 vs 69/100), backed by strong 60.3% margins and 31.2% revenue growth. FANG offers better value entry with a 47.0% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Diamondback Energy Inc

ENERGY · OIL & GAS E&P · USA

Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.

Texas Pacific Land Corporation

ENERGY · OIL & GAS E&P · USA

Texas Pacific Land Corporation is engaged in land and resource management, and water operations and services businesses. The company is headquartered in Dallas, Texas.

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